"We are willing to invest ahead of demand here because we are very bullish that demand is going to keep growing here," Wagoner said.

GM's China sales jumped 36.7 percent in the first three quarters of this year and Wagoner said GM expects further sales growth in China, boosted by strong demand for such GM models as the Buick LaCrosse.

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Wagoner's trip to China was to showcase GM's progress in bringing its newest technology to market, the story said. Wagoner showed off the Sequel, a hydrogen fuel-cell vehicle that looks like a minivan and has a range of 300 miles. "We believe fuel-cell vehicles offer the best long-term solution for meeting the world's growing demand for automobiles in an economically and environmentally sustainable manner," Wagoner said.

GM also has a joint venture with local partner Shanghai Automotive Industrial Corp., to begin manufacturing hybrid gas-and-electric-powered vehicles by 2008.

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